Celanese Corporation · NYSE:CE
Celanese — Q2 2002 Earnings Presentation
19 slides from Celanese's earnings presentation, August 2002
Slide 1: Performance Amid Mixed Economic Signals
Performance Amid Mixed Economic Signals Perry Premdas, Chief Financial Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation relating to future status or circumstances, including statements regarding management‘s plans and objectives for future operations, products and services, are forward-looking statements of goals and expectations based on estimates, assumptio
Slide 3: Improving Efficiency and Optimizing the Portfolio are the Paths to Increasing Value
Improving Efficiency and Optimizing the Portfolio are the Paths to Increasing Value Optimize and expand the portfolio > Investments in Reduce costs businesses with stronger margins Increase the > Restructuring value of the > New plants and company > Initiatives Focus expansions Demerger and Forward
Slide 4: Global Leader in Major Regions
Global Leader in Major Regions 2001 Sales - €5.1 bn By Destination = Europe = NAFTA = Asia = ROW > #1 or #2 global supplier in 70% of sales > Leading technology positions 3% 14% > 30 plants in 11 countries 37% > 11,800 employees > 5 R&D sites 46% > 70% of assets in NAFTA > Global share: NYSE (CZ), F
Slide 5: Leading Global Positions in Core Products
Leading Global Positions in Core Products Acetyl Products Technical Polymers Performance Products Ticona E Sales: €2,155 m Sales: €773 m Sales: €440 m X Products: Acetic acid, vinyl Products: Polyacetal, P acetate, polyvinyl alcohol polyester, UHMW-PE, liquid crystal polymers Business: Nutrinova foo
Slide 6: Business environment
Business environment Industry Production Indicators Capacity utilization 30 95% Automotive PI NA Automotive PI EU Acetic Acid Vinyl Acetate % change to previous year quarter General Industries PI NA General Industries PI EU 20 90% 85% 10 80% 0 75% -10 70% -20 65% 2000 Q1/2001 Q2/2001 Q3/2001 Q4/2001
Slide 7: Key Financial Data
Key Financial Data in € millions Q2 2001 Q2 2002 chg. in % Q1 2002 Net sales 1,396 1205 (14) 1,182 EBITDA excluding special charges 132 102 (23) 115 EBITDA excluding special charges margin 9.5% 8.5% 9.7% Special (charges), net 1 (3) n.m. 0 Net earnings (loss) (1) 34 22 (35) 36 Earnings (loss) per sh
Slide 8: EBITDA Development
EBITDA* Development EBITDA* in € million and % of sales 75 11.5% Q2 2001 Q1 2002 Q2 2002 65 9.3%12.4% 55 45 35 16.0% 7.7% 14.3% 13.9% 25 8.5% 11.4% 17.5% 20.2% 5.6% 15.2% 15 3.9% 5 -4.2% -5 -15 Acetyl Products Chemical Acetate Ticona Performance Intermediates Products Products Weak performance in ch
Slide 9: Net Financial Debt Development
Net Financial Debt Development in € million €148 million operating cash flow (-) €81 million investing cash flow 900 800 700 600 500 400 832 691 300 200 100 0 12/31/2001 Operations Change in Trade Special Capex Other Other / 06/30/2002 eq. of Working Charges investing act. Exchange affiliates Capita
Slide 10: Acetyl Products - Leading Market Position
Acetyl Products - Leading Market Position Acetic Acid Vinyl Acetate Monomer Polyvinyl Alcohol % market share % market share % market share 30 30 25 25 25 20 20 20 15 15 15 10 10 10 5 5 5 0 0 0 BP Amoco Celanese Millennium Celanese Dow Millennium Kuraray Celanese Nippon Synthetic Industry Capacity: 8
Slide 11: Acetyl Products - Global Leadership in an Integrated Chain
Acetyl Products - Global Leadership in an Integrated Chain Natural Gas Me OH CO Formaldehyde > Cost & Technology Leadership = World scale plants Butane (C4) Acetic Acid = Consolidation of sites Acetate Esters = Closure of high cost capacities (~570kT p.a.) C2 Acetic = Leading technologies / Low cost
Slide 12: Ticona - Growth and Innovation
Ticona - Growth and Innovation Est. regional annual growth by `05 NAFTA 7% Global ETP* demand 2001: 5.85 m t Europe 8% Asia 11% Other Asia Pacific Japan 5% 9% ROW 8% Europe TOTAL 8% China 34% 16% Ticona Investments Japan >GUR®: new plant in Texas, start-up 2002 12% >Vectra®: capacity expansion in No
Slide 13: Growth Through Innovation – Door Lock Housing for Daimler Chrysler C-Class
Growth Through Innovation – e.g. Door Lock Housing for Daimler Chrysler C-Class Flex finger integrated into the Challenge Celanex 2300 GV 1/30 housing > 1st electric driven door lock for DC passenger cars. > Crash resistance > Locking acoustics Ticona Products > Housing: Celanex 2300 GV1/30 > Cover:
Slide 14: Ticona - Major End Use Industries
Ticona - Major End Use Industries Sales by end use market 2001: €773 milion Consumer Appliances 6% 5% Others Industrial 5% Medical Industrial 12% Celcon /Hostaform Fortron Celanex Electro & Electronics 16% Automotive Medical 53% 3% Automotive Electro & Electronics All Products Vectra 14 August
Slide 15: Striving for Operational Excellence
Striving for Operational Excellence > ~400 Black and Green > “Forward” Streamlined Six Sigma Belts active at the end Implementation Organization of H1’02 >3% of employees EHS Excellence > Supply Chain > Maintenance Best > Advanced Process Excellence Practices Control Digitization Standardization Rea
Slide 16: Six Sigma – Optimization n-Valeric Acid Production
Six Sigma – Optimization n-Valeric Acid Production Objective: Increase Capacity and Yield > Results: = € 660,000/a of additional revenue generation (product is in sold-out condition) = € 116,000/a of raw material savings. = Project implemented in ~5 months = Capital invested: € 0 > Lessons: = Lookin
Slide 17: Ownership in Performance
Ownership in Performance > Senior management owns a significant interest in shares and rights > Incentive Programs = 5.9 mil. Share Appreciation Rights oustanding (at Dec 31, 2001): ? €1 share price change = €4.0-4.5 mil in EBITDA variance = 1.11 mil. Stock Options (issued July 8, 2002) > Stock Opti
Slide 18: Outlook for 2002
Outlook for 2002 > FY 2002 EBITDA* to approximate FY 2001 level of €420 million > Capital expenditures at approximately FY 2001 level > Trade Working capital under tight control > Year end net financial debt in range of mid €800 million Cost reductions and efficiency improvements driving performance
Slide 19: Key facts
Key facts > IR contacts: United States Europe Andrea Stine Michael Oberste-Wilms Oliver Stratmann phone: 908-522-7784 phone: 011-49-69-305-83199 phone: 011-49-69-305-4139 fax:908-522-7583 fax: 011-49-69-305-83195 Fax: 011-49-69-305-83195 email: [email protected] email: [email protected]